What is BSC?

Balanced Scorecard (BSC) is a concept helping you translate strategy into action. BSC provides management with a comprehensive picture of business operations and a methodology that facilitates the communication and understanding of business goals and strategies at all levels of an organization. QPR ScoreCard helps you automate and communicate your BSC.

Traditional performance measurement, focusing on external accounting data, was quickly becoming obsolete and something more was needed to provide the information age enterprises with efficient planning tools. For this purpose Kaplan & Norton introduced four different perspectives from which a company's activity can be evaluated:

BSC 1

Create a Balanced Scorecard: You have to identify a vision. Where is the organization going? By identifying strategies you learn about how you will get there. Define Critical Success Factors and perspectives, which means you have to ask what do we have to do well in each perspective. Thereafter ask how do we measure that everything is going the expected way? Then it is necessary think about evaluating your Scorecard. Consider how do we ensure that we are measuring the right things? Based on this work you should create action plans and plan reporting and operation of the Scorecard. How do we manage the Scorecard? Which persons should have reports and what should the reports look like?

BSC 2

The picture shows a very general example of a Scorecard. Where are we going? The vision: "We should dominate the market." How? By focusing on cost efficiency, high quality and by investing in new technologies. In which perspectives should we excel at what? Responsibilities and action plans for achieving targets set are defined. You can easily create a Scorecard, but to create a manageable scorecard is a completely different thing!


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